US Foods Acquires SGA’s Food Group of Companies

US Foods Acquires SGA’s Food Group of Companies

Monday, July 30th, 2018

This week, US Foods announced it has entered into a definitive agreement with Services Group of America (SGA) to acquire the five operating companies—Food Services of America, Systems Services of America, Amerifresh, Ameristar Meats, and GAMPAC—for $1.8 billion.

Pietro Satriano, Chairman & CEO, US Foods“This acquisition will significantly increase US Foods’ reach across key markets in the attractive and growing Northwest region of the U.S. and adds one of the most well-regarded regional distributors to our company,” said US Foods Chairman and CEO Pietro Satriano, in a company press release. “With a shared commitment to customer service, including a proven track record of leveraging technology and private brands to meet customer needs, SGA’s Food Group of Companies is an ideal fit. The company’s unique merchandising programs, mature local sourcing capabilities, and track record of operational excellence will be strong additions to our business. We look forward to welcoming the talented teams at SGA’s Food Group of Companies to US Foods, providing customers with even better service and expanded capabilities, and delivering accelerated growth and value to our shareholders.”

While SGA will continue as a private holding company following the acquisition, US Foods listed a complementary geographic footprint, increased scale and accelerated growth, attractive synergy opportunity, attractive valuation, and accretive to adjusted EPS as attributes of this acquisition.

US Foods is expanding its reach into key markets after acquiring five operating companies

“For the past 46 years, we have had the vision to become a leading national foodservice company. This is an exciting milestone on our journey and provides more success and growth opportunities for our customers and our Associates,” said Slade Stewart, SGA’s Executive Vice President and COO. “We now can fulfill our long-term vision of serving customers across America.”

According to a press release, the five companies US Foods is acquiring compete in different segments of the food industry and their operations include the following:

  • Food Services of America is a regional broadline distribution company with nine distribution centers that serves independent restaurants, healthcare facilities, hotels, and cruise ships
  • Systems Services of America has distribution centers in California and Arizona and provides custom distribution to restaurant chains in the quick service and casual family dining segments and regional restaurant concept market
  • Amerifresh is a produce marketer with locations in Washington, California, Arizona, and Texas, that provides fruits and vegetables to the foodservice and retail grocery industries
  • Ameristar Meats has locations in Washington and North Dakota and provides premium custom meat products for customers in the foodservice and retail industries
  • GAMPAC provides nationwide transportation management and logistics services out of Scottsdale and Indianapolis

For more details on the acquisition, click here. To continue to follow along with all industry happenings, stay tuned to Deli Market News.

US Foods